Magic Circle law firm Linklaters’ revenue has surpassed the £2bn mark for the first time.
Over the last financial year, Linklaters revenue grew by 10 per cent to £2.1bn, up from £1.78bn while its pre-tax profit also increased by over 10 per cent to £942m.
The average profit that 549 Linklaters partners earned was £1.8m, which was up 7 per cent on the previous year.
The firm’s profit per equity partner (PEP) was up eight per cent to £1.9m, up from £1.87m. The firm does not disclose how many equity partners it has but it is understood to operate a small pool.
The firm credited its expansion into the US and recently won large mandates for growth.
The firm’s partnership shook up its lockstep system in 2022 by voting on reforms, which included an extension at the top of the lockstep for the partners who made an exceptional contribution and the ability to elect top talent to the partnership earlier.
The firm reported a strong performance across its global network (31 offices in 21 countries), but in particular, the US had its best-ever results, delivering a 24 per cent increase in revenue, while the UK also had its best-ever year.
US expansion pays off
Like some of its English competitors, Linklaters has had its eye on the US for some time with offices in New York and Washington DC.
The firm has invested heavily across the Atlantic in recent years. In January, it added an M&A team in New York, led by rainmaker George Casey from Shearman & Sterling (pre-merger).
Linklaters stands out for its expansion in the US. Peers have struggled and failed to break into the market, resorting to mergers instead. Allen & Overy (A&O) merged this year with US giant Shearman & Sterling to create A&O Shearman.
While it has focused on the US, a big part of Linklaters’ strategy has been to act on the higher-end deals. Despite a market slowdown the firm advised on $133bn (£104bn) worth of deals in 2023.
It has focused on large, complex cross-border deals. It was instructed in the UK on four £1bn+ public deals in the market – Barratt/Redrow, Keysight takeover of Spirent, Anglo American/BHP, Mondi/DS Smith.
Commenting on the results, managing partner Paul Lewis noted Linklaters has: “Seen a strong performance across the firm, with M&A, complex restructurings, contentious mandates and energy transition-linked projects the biggest drivers of growth.”
He added: “With markets now bouncing back, particularly on the public M&A front, our teams have had a very busy start to the year, acting on many high-profile roles in the market.”
“We’ll continue to invest to make sure we deliver the best service for our clients on their biggest transactions and most complex legal matters in key jurisdictions,” he added.